Enron has proposed a new pipe

Source: Money

HOUSTON (Reuters) - Bankrupt Enron has proposed to form a new power and pipeline company encompassing North and South America, but said it would continue to sell other assets in Europe and Asia to help its creditors recover up to about $20 billion.

Under Friday’s proposal, the former energy giant, which once traded power, natural gas and other commodities, said it would scale back to form a company focused on natural gas pipelines and power plants with about 12,000 employees, down from 23,000 now. The job losses would include transfers as units get sold, or layoffs, Enron said.

Interim Chief Executive Stephen Cooper said he aims to move the company’s core energy assets out from bankruptcy court proceedings. Any assets not in the new company would be sold. Cooper estimated that creditors could recover about $15 billion to over $20 billion.

"Most of our assets that are outside of North, Central and South America will be disposed of," Cooper said in a conference call, including wind-generation business, a power plant in India, and real estate.

Any reorganisation plans must be approved by Enron creditors, who claim they are owed billions of dollars, and plans must clear them before they are sent to bankruptcy court for final approval

Enron filed for Chapter 11 bankruptcy protection from its creditors on Dec. 2 following the collapse of the former energy trading giant over questions about its accounting and partnerships.